1. Integrating Renewables – A Utility Perspective Jennifer S. Szaro OUC ~ The Reliable One

2. OUC’s Renewable Energy Business Objectives Balance sustainability with affordability and reliability Provide a hedging strategy against potential regulatory requirements through the acquisition of renewable energy credits (RECs) and Carbon Offsets Leverage state and federal incentives offered to encourage the development of customer-sited assets Offer an option to customer requests for environmentally-friendly energy and water investments Pursue least-cost planning for future energy investments

3. Key Technologies Biomass Energy Technologies –Gasification –Co-Firing with Traditional Fuels –Anaerobic Digestion –Stand-Alone Biomass Generators Biomass Energy Resources –Landfill Gas –Municipal Solid Waste –Biomass Residues –Energy Crops (Including Algae) Solar Energy –Photovoltaics –Solar Hot Water –Concentrating Solar

4. Biomass for Electricity Benefits: –Can be co-fired –Can be used 24 hours/day –Carbon neutral fuel –Can be burned as solid or gas using conventional technologies –Relatively low cost if available –Creates local jobs Challenges: –Lower BTU value –Lower density/higher moisture content –Competing uses –Short-term vendor contracts –Uncertain availability –Handling challenges

5. Landfill Gas Benefits: –Can be co-fired –Can be used 24 hours/day –Extremely low cost –Carbon reduction benefits Challenges: –Lower BTU value –May need to be cleaned –Location specific

6. Solar (Electric and Thermal) Benefits: –No fuel costs –Carbon free –Can be distributed near the user –Thermal is low cost –Creates local jobs Challenges: –Not dispatchable –Intermittent resource –PV is still expensive compared with conventional fuels –Minimal impact to winter peak

7. Natural Gas Landfill Coal and Landfill Gas Summer Peak Day

8. PV Contribution Biomass Co-Firing Opportunities Biogas Opportunities Summer Peak Day with Renewables

9. Winter Peak Day

10. Winter Peak Day with Renewables PV Contribution Biogas Opportunities Biomass Co-Firing Opportunities

11. A Balanced Approach

12. Orlando’s Green Future Alliance Received USDOE Solar Cities Grant to promote solar Established an integrated energy alliance with the City of Orlando and Orange County Government to promote green market transformation in Central Florida Conducting a series of energy training courses and stakeholder workshops to determine best practices and needs of our community

13. OUC’s Current Solar Projects 1-MW solar array on Convention Center –Partnership with OC, DOE and DEP –Largest PV array in the Southeast on a building –Provides electricity for 100 homes Solar on Schools Program –5 existing sites –Partnership with Orlando Science Center to develop and deliver curriculum –PV system on Orlando Science Center Jetport Solar RFP –10 MW located on OUC property –PPA with solar developer –Operational by late 2010

14. OUC’s Customer Solar Programs Solar Production Incentive –Provides incentives for producing energy from solar hot water and PV –Over 300 customer participants Solar Billed Solution –Provides no/low interest loans through the Orlando Federal Credit Union (OFCU)

15. OUC Customer Solar Production Incentives $.03/KWH for all energy produced from solar thermal systems $.05/KWH for all energy produced from solar PV systems Requires customer contract OUC now offers a $250 credit to customers to compensate for the cost of the BTU meter installation.

16. OUC/OFCU Solar Loan Program Solar Thermal Systems (Up to $7,500) TermRate 36 Months0.00% 60 Months2.75% 84 Months4.00% Solar PV Systems (Up to $20,000) TermRate 36 Months2.00% 60 Months4.00% 84 Months4.75% 120 Months5.50%

17. Biomass Energy Projects Landfill Methane Recovery Projects –Orange County Landfill displaces 3% of fuel required for either of Stanton’s coal units ~ expanding to 22 MW –St. Cloud Landfill 1 MW project being planned –Holopaw Landfill Project recently approved (~ 15 MW) Harmony Hybrid Solar/Biomass Power Plant –5 MW Plant will be located in Harmony’s Florida Sustainable Energy Research Park –Uses biomass gasifiers and concentrating solar to generate electricity –Includes educational partnership with FSU City of Orlando MSW Gasification Project –Could process up to 300 tons of waste daily –City plans to release RFP this year –OUC plans to purchase syngas from project –To be located at Orange County landfill

18. On the Horizon…

19. New Solar Business Models Community Solar Farm –500 KW to 1 MW depending on customer participation –OUC holds PPA with vendor and acts as billing agent –No upfront cost to participate –Fixed monthly rate for 20+ years –Virtual net metering –Allows for multi-family participants –Removes siting barriers –OUC owns RECs Commercial Solar Aggregation Pilot –OUC holds PPA with vendor and acts as billing agent –No upfront cost to participate –Fixed monthly rate for 20+ years –Customer retains demand savings and any net metering –Sited on the customer’s rooftop –Price reductions from project aggregation –OUC owns RECs

20. New Biomass Opportunities Algae Biomass Project –Opportunities to use algae to treat wastewater –Fed CO2 from post- scrubbed flue gas –Algae is “cracked” to obtain biofuels and biomass feedstock for co-firing. Biomass Co-Firing –Possibly up to 10% of boiler capacity –Ship biomass feedstock via rail cars from longer distances –Consider torrefaction to improve BTU content and moisture content

21. CONTACT INFORMATION Jennifer Szaro jszaro@ouc.com (407) 423 – 9100 Ext. 2086